The best thing I could’ve done for myself is S Corp my business and w-2 myself. (A thread)

So I’m self employed by I’m also employed by ANS Hair Studio which is my salon. Make sense?

So when I filed for unemployment my approval was fast and easy because I have W-2.

My main reason for doing that is because I want to buy a house and it’s so much harder to do when your self employed. Trying to show that you make the money when we write off so much stuff so we don’t have to owe a lot in taxes.

My first year as a hairstylist I made over $70,000. I didn’t pay any taxes that year and owed $15K in taxes. The next year I payed taxes monthly, but made more than the year before and I owed close to $8k that year.

So the next year I turned my business into an S Corp and I am an employee of my LLC. So every Thursday up until COVID I would do payroll for Friday and I would get a direct deposit every Friday. I use Quickbooks. My taxes are automatically taken out and I pay those quarterly.

I highly recommend you do that if you are self employed. LLC your business and turn it into an s Corp and become an employee of your company.

But*